Shell set to sell US$3 billion North Sea assets

Reuters are reporting that LNG giant Royal Dutch Shell is closing on the sale of a large part of its North Sea oil and gas assets to private equity-backed Chrysaor for US$3 billion, marking a milestone in its drive to reduce debt after buying BG Group.

Chrysaor will acquire from Shell a mix of older fields, new developments and infrastructure in a move analysts say could breathe new life into one of the world's oldest offshore basins where production has been in a steady decline since the late 1990s.

The anticipated deal in what is a relatively high-cost region has been seen by the industry as a test for the sector's appetite for buying and selling oil and gas fields as it slowly emerges from two-and-a-half years of downturn.

The deal is expected to be announced in the coming days to coincide with Shell's full-year results released on 2 February.

Chrysaor will take charge of hundreds of Shell and former BG employees that work on the platforms.